The Colombo Bourse came under significant selling pressure during the first hour of trading as investors engaged in profit-taking, before gradually regaining momentum as buying interest returned throughout the session.

The ASPI climbed 109 points to close at 21,240, while the S&P SL20 gained 16 points to close at 6,045, with both indices recovering to close in the positive territory.

The top positive contributors to the ASPI remained CARS, COMB, HNB, DIAL and DIST. Trading activity was predominantly retail-driven, while crossing transactions recorded a decline, indicating relatively lower HNW activity. 

Daily turnover stood at LKR 2.9Bn, marking an increase of 89.8% over the monthly average of LKR 1.5Bn. Banking sector led the daily turnover with a share of 25%, followed by the Capital Goods, and Materials sectors collectively contributing 31%. Foreign investors remained net sellers, posting a net outflow of LKR 184.0Mn.

BOND MARKET

Profit booking emerges following yesterday’s yield compression

Following the ease in yields yesterday, investors booked profits in the secondary market, prompting the yield curve to slightly edge up today. 

Meanwhile, the market witnessed moderate trading volumes. In the 2030 segment, 01.03.2030, 01.07.2030, 01.08.2030 and 15.10.2030 traded between 11.00%-11.15%.

Moving ahead, 01.12.2031 maturity traded between 11.26%-11.32% and 15.12.2032 bond traded at 11.60%. Furthermore, at the belly-end, 15.01.2033, 01.06.2033 and 01.11.2033 changed hands within 11.75%-11.95%, while 15.06.2034, 01.09.2034 and 15.10.2034 maturities were dealt in the range of 12.05%-12.15%. The long-dated 15.08.2036 bond was traded between 12.30%-12.40%.

On the external front, the LKR appreciated against the USD, standing at LKR 332.41/USD compared to LKR 332.79/USD recorded earlier. Market liquidity in the banking system expanded to LKR 422.29Bn compared to LKR 421.18Bn seen previously.

-First Capital Research-